Against this more cheerful background Deutsche Bank busied itself with the big oil firms. It downgraded Royal Dutch Shell, but upgraded Total name=”undefined”] to “buy”.

On Total, the brokerage said:

“Trading at the low end of its 10-year relative range and with a secure 6% plus dividend yield offering absolute support, we see the shares as presenting an attractive risk/reward balance ahead of the broadest and potentially most exciting 2013 exploration program among the European majors.”

As far as Shell is concerned, Deutsche Bank said that after a disappointing 2012, it now looks to a stronger performance in 2013, not least as full cash is delivered from its various megaprojects.

“We have liked Schroders as a business for some time, but now believe that the combination of strong positioning and a supportive backdrop outweighs the disadvantage of an over-padded balance sheet.”

It s analysts added that while there is still strong demand for fixed income, equity flows have bounced. This could well continue into 2013, providing a helpful backdrop for managers like Schroders who have a balanced business, said the brokerage. It added that the company is now strongly diversified, with a thriving multi asset franchise to add to its equity and fixed income businesses.

JPMorgan Cazenove took a look at prospects for U.S. and European equities next year. It expects euro-zone equities to outperform the U.S., with the region more advanced in the adjustment process and valuations extremely cheap when compared with the U.S. JPM said that last year, its top country pick was the DAX, but for 2013, peripheral markets offer an improved risk-reward basis over core markets.

However, while stocks are likely to ultimately deliver positive returns next year, the first half of 2013 could well be volatile.

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